Compensation unlikely for businesses hit by burst mains

Robbie Williams from Hydrotec and Sang Hee Yoo at a temporary filling station. Photo / Dean Purcell

Watercare working to complete repairs overnight after ‘water hammer’ cuts off part of Albany.

Albany businesses forced to close yesterday because of burst water mains seem unlikely to get any compensation for their losses.

Water was cut to about 30 streets including the Albany mall, Massey University's Albany campus and businesses in Oteha Valley Rd from 3.30pm on Thursday.

Watercare said it hoped to complete repairs late last night to get the water back on by this morning.

The mall, Oteha Valley School and some businesses were closed all day yesterday, although the New World supermarket in the mall, Albany Senior High School and other businesses stayed open.

But Watercare spokeswoman Rachel Hughes said the Auckland Council-owned company would not pay any compensation to the businesses that closed.

"We don't offer compensation. We advise them to talk to their insurance companies," she said.

Scentre Group, which owns the mall, said individual shop owners would need to speak to their own insurers.

"It is standard business practice for the building owner and for the individual lessees to hold insurance, which could extend to business interruption," said company spokeswoman Debra McGhie.

Insurance Brokers Association chief executive Gary Young said there were no statistics on how many businesses had business interruption insurance.

"If you are talking big business, they could all have it, but if you are getting down to very small businesses it gets less and less likely," he said.

"It would be normal for businesses to have liability insurance to cover any liability they might have to others. Business interruption is optional, that's why it's hard to know how many would take it up, but I think after Christchurch [earthquakes] we saw a jump in the numbers that took it."

However he said even those who insured against business interruption might not be able to claim it for one day's trading because there was normally a loss "excess".

"It normally wouldn't kick in instantly, there would be some sort of delay before it takes effect. You don't want claims for every one-hour power cut," he said.

Watercare acting chief operations officer Shayne Cunis said water pipes burst in three places due to a sudden change of water pressure caused by an unexpected valve closure.

"This sent a shock wave, known as a 'water hammer', through the pipe which caused fittings at three points on the pipe to break," he said.

The company supplied tankers in eight locations all day yesterday for residents to come and fill up buckets and containers.

Tankers were also stationed all day at the Fairview and Settlers retirement villages to pump water into the village water systems so that their 540 elderly residents and 47 hospital patients still had water in their taps and toilets, although with reduced pressure.

Residents in Bushlands Park Drive supplied coffee and scones for two contractors who stayed by the tankers until 11.30pm on Thursday night and from 6am yesterday.

"These boys are good," said Diane Stevens, who brought them the scones. "The boys are working long hours and they give you a laugh when you come up."

• Watercare's contract with business customers says that, unless there is damage to a customer's property, Watercare "will not be liable for any loss incurred by your business as a result of our business, including loss of revenue, goodwill, actual or anticipated business".

Local downs tools and steps up to help out neighbours

Gary Douglas loaded a 1000-litre tank on his trailer and went about delivering water to neighbours. Photo / Jason Dorday

Real estate agent Gary Douglas handed over his job to his wife yesterday so he could take water around the streets of Albany.

Mr Douglas, 58, and his wife Lucy live in Georgia Tce just outside Albany Village, and when the water was cut off he didn't just look after himself.

"To put it politely, we needed some water for our toilets quite desperately and all I had was a bucket," he said. "So I thought, if I'm desperate, others are desperate."

He has a 1000-litre tank for his lifestyle block, where he grows flowers and vegetables and grazes sheep. He put it on his trailer, filled it with water from a Watercare tanker stationed round the corner in The Avenue, and started knocking on his neighbours' doors.

"I'm just driving around. If I see people, I stop and say, 'Do you want water?'" he said.

"I've been up and down Georgia Tce. I'm saying to people, 'Don't get desperate, I'll just drive around the neighbourhood tonight. We are only me and my wife at home, but there's lots of families around and if you can't go to the toilet and don't have water for dishes and stuff, it's difficult."

He and his wife work together for Bayleys, so she was able to fill in for him.

"She has kind of given me the time off so I can do this," he said. "Someone's got to earn us a living."

Another Georgia Tce resident, Fiona Spicer, said she was surprised when Mr Douglas knocked on her door about 10am yesterday and gave her three buckets of water. He also filled two plastic containers for her.

"I opened the door and there he was offering water, suggesting we might need some," she said.

"I didn't even know there was a tanker anywhere, I just knew we were out of water. It was a very refreshing surprise.

"We are from South Africa originally, from Johannesburg, and there were frequent water and electricity cuts there, but I've never had anyone come and knock on my door and offer to provide it."

The Spicers became NZ citizens just two weeks ago and Mrs Spicer said Mr Douglas's generosity made her proud to be a Kiwi.

"I must say it's new to have an incident like this and then to have community support, and to have the council supply another option is just wonderful," she said. "Being in a country that does this kind of thing is awesome."